1. Be reliable
In the case where the business has a business transaction with a company that needs credibility Registering as a company is more reliable than conducting business as an individual.
2. Save on taxes
The highest personal income tax rate is 35%, while the highest corporate income tax rate is 20%. And if it is an SME business with a registered capital of not more than 5 million baht and an income of not more than 30 million baht, it will receive a periodic tax rate reduction. of profit From tax exemption on the first 300,000 baht of net profit, 15% rate and 20% rate
3. Can deduct high expenses
Individuals, if using the lump-sum expense method Expenses will be deducted at 10%-60% (income 40 (7) and (8) can actually be deducted), which if it’s a business, there are high costs. Registering as a company can deduct actual expenses that are higher, such as a business with 80% of expenses.
4. Losses are not subject to tax.
If the company makes a loss, it does not have to pay corporate tax. But if you are an individual, the maximum deduction of expenses is 60%, so there is still income difference that must be paid to personal income tax.
5. Use losses from 5 years to reduce taxes.
Loss-making companies can deduct losses from the previous year not exceeding 5 years from the current year, resulting in reduced tax payments. But natural persons cannot deduct losses from previous years to reduce tax payments.
6. Debt Responsibility
If the company has problems operating its business, its liability is limited to the amount of outstanding capital. According to the amount of registered capital of the company But if you are a natural person, you will have unlimited responsibility. and may involve private property
